Higher natural gas rates proposed

Monroe, MI – Michigan Gas Utilities (MGU), a subsidiary of Integrys Energy Group (NYSE: TEG), has filed a request for new natural gas distribution rates with the Michigan Public Service Commission. If granted, the request will result in an overall rate increase of about 6% and become effective on January 1, 2014.

MGU last implemented new distribution rates on January 1, 2010.

MGU needs the increase to offset the cost of upgrades to its transmission and distribution systems, decreased revenues, increased costs of customer service functions, and general inflation. The company has recently upgraded several aspects of its natural gas system, replacing vintage steel pipe, and rebuilding some older facilities.

“MGU has long been committed to safe, reliable and affordable gas service for our customers,” said Barbara Nick, President of MGU “This rate adjustment will allow us to continue our efforts to modernize portions of our system that are aging.” Nick indicated that MGU has been extremely prudent in all budget categories over the past 3 years, adding that rate cases are not taken lightly and only filed when absolutely necessary.

If approved, typical MGU residential customers using 880 CCF annually will see their natural gas bills increase approximately $2.34 per month. Even after the increase, if it is approved, typical MGU residential customers will pay nearly 25% less than in 2010, due to lower natural gas market prices.

MGU says it currently has one of the lowest distribution charges of natural gas companies in the state.